HHS awards $57M for Oseltamivir Phosphate, boosting pharmaceutical preparedness
Contract Overview
Contract Amount: $57,099,989 ($57.1M)
Contractor: Alvogen, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2024-09-19
End Date: 2025-03-19
Contract Duration: 181 days
Daily Burn Rate: $315.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: OSELTAMIVIR PHOSPHATE 75MG, 10 CT BLISTER (ADULT COURSE)
Place of Performance
Location: MORRISTOWN, MORRIS County, NEW JERSEY, 07960
Plain-Language Summary
Department of Health and Human Services obligated $57.1 million to ALVOGEN, INC. for work described as: OSELTAMIVIR PHOSPHATE 75MG, 10 CT BLISTER (ADULT COURSE) Key points: 1. Significant investment in a critical antiviral medication. 2. Competition method indicates potential for competitive pricing. 3. Risk of supply chain disruption for essential medicines. 4. Pharmaceutical sector spending is vital for public health security.
Value Assessment
Rating: good
The award amount of $57,009,989.22 for Oseltamivir Phosphate appears reasonable given the quantity and the nature of the product as a critical pharmaceutical. Benchmarking against similar large-scale pharmaceutical procurements would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method is generally expected to drive competitive pricing and ensure the government receives fair market value.
Taxpayer Impact: The use of competitive bidding for essential pharmaceuticals like Oseltamivir Phosphate aims to optimize taxpayer spending while ensuring adequate supply for public health emergencies.
Public Impact
Ensures availability of a key antiviral medication for public health emergencies. Supports domestic pharmaceutical manufacturing capabilities. Contributes to national biodefense and pandemic preparedness efforts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future procurements.
- Reliance on a single supplier for this specific order.
- Geopolitical factors impacting global pharmaceutical supply chains.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract limits cost uncertainty.
- Strategic investment in national health security.
Sector Analysis
This procurement falls within the pharmaceutical preparation manufacturing sector, a critical component of the healthcare industry. Spending in this area is often driven by public health needs, emergency preparedness, and strategic stockpiling.
Small Business Impact
The data does not indicate specific participation or subcontracting by small businesses in this award. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The award was made by the Office of Assistant Secretary for Preparedness and Response (ASPR) within HHS, an agency focused on preparing for health emergencies. Oversight would involve monitoring delivery, quality, and adherence to contract terms.
Related Government Programs
- Pharmaceutical Preparation Manufacturing
- Department of Health and Human Services Contracting
- Office of Assistant Secretary for Preparedness and Response Programs
Risk Flags
- Supply chain dependency
- Potential for price escalation in future contracts
- Long-term storage and potential obsolescence
- Dependence on specific manufacturing processes
Tags
pharmaceutical-preparation-manufacturing, department-of-health-and-human-services, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $57.1 million to ALVOGEN, INC.. OSELTAMIVIR PHOSPHATE 75MG, 10 CT BLISTER (ADULT COURSE)
Who is the contractor on this award?
The obligated recipient is ALVOGEN, INC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Office of Assistant Secretary for Preparedness and Response).
What is the total obligated amount?
The obligated amount is $57.1 million.
What is the period of performance?
Start: 2024-09-19. End: 2025-03-19.
What is the historical pricing trend for Oseltamivir Phosphate procurements of similar scale?
Analyzing historical pricing data for Oseltamivir Phosphate is crucial to determine if the current award represents a favorable price point. Fluctuations in raw material costs, manufacturing complexities, and market demand can all influence pricing. Understanding past contract values and quantities will help assess whether this $57 million award aligns with or deviates from established benchmarks, providing insight into potential cost efficiencies or areas for future negotiation.
What are the primary risks associated with relying on pharmaceutical manufacturing for national stockpiles?
Key risks include supply chain vulnerabilities, such as reliance on foreign raw materials or manufacturing disruptions due to geopolitical events or natural disasters. Manufacturing quality control failures can lead to ineffective or unsafe products. Furthermore, long lead times for production and potential obsolescence of stockpiled items due to evolving medical knowledge or new threats pose significant challenges to maintaining an adequate and relevant national stockpile.
How effectively does this procurement contribute to the nation's preparedness for influenza pandemics?
This award is a direct contribution to pandemic preparedness by securing a substantial quantity of Oseltamivir Phosphate, a primary treatment for influenza. Ensuring availability through strategic stockpiling mitigates the immediate impact of an outbreak. However, effectiveness also depends on distribution logistics, public health guidance for its use, and the potential for viral resistance, which require ongoing monitoring and complementary preparedness strategies.
Industry Classification
NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation Manufacturing
Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Stroz Friedberg, LLC
Address: 44 WHIPPANY RD STE 300, MORRISTOWN, NJ, 07960
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $57,099,989
Exercised Options: $57,099,989
Current Obligation: $57,099,989
Actual Outlays: $57,099,989
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 75A50119D00035
IDV Type: IDC
Timeline
Start Date: 2024-09-19
Current End Date: 2025-03-19
Potential End Date: 2025-03-19 00:00:00
Last Modified: 2024-12-04
More Contracts from Alvogen, Inc.
- Oseltamivir Phosphate 75MG Capsules (NDC: 47781-470-13); 10 CT. Blisters Packs and Oseltamivir Phosphate 30MG Capsules (NDC: 47781-468-13); 10 CT. Blisters Packs — $227.7M (Department of Health and Human Services)
- Deliver Oseltamivir Phosphate to the Strategic National Stockpile — $40.0M (Department of Health and Human Services)
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